CCL Industries Inc.
confirmed it has received regulatory approvals in the US and Mexico for the previously announced acquisition of Treofan America Inc. and Trespaphan Mexico Holdings GmbH (collectively Treofan Americas). The closing date has been set by the terms of the Purchase & Sale Agreement for July 2, 2018, with a purchase price net of cash and debt assumed of approximately $255 million for the business plus an estimated $35 million for the capital cost incurred at close for a new state-of-the-art 10-meter-wide biaxially oriented polypropylene film extrusion line at the Mexican facility. The Company expects to incur additional capital expenditures, estimated at $30 million, to complete the capacity expansion project over the balance of 2018.
Post close, the Treofan Americas operations in Mexico and the United States will immediately transition to trade under the Innovia Films name. The combined business will be headed by Guenther Birkner, president of CCL’s Food & Beverage and Healthcare & Specialty businesses and Innovia Films.